Question

Homework Help Asap please:
Question in comments

Answer 1

2. The AD/AS model is very useful in analyzing the macro economy. It’s so useful, in fact, that it can be used to compare and contrast two very different views of the economy and to describe situations in which one may be more valid than another.

A. To start this process, explain and show in an AD/AS graph how the economy returns to the long-run, full-employment equilibrium level of output from the following levels:

I. A level of output that is higher than the full-employment level

II. A level of output that is lower than the full employment level

III. Are prices rigid or flexible in your answers to I and II?

B. The classical view of the economy holds that transitions to full employment are relatively quick. Under what condition(s) can an economy make a relatively quick and easy transition to full-employment level of output?

C. The Keynesian view of the economy holds that transitions to full employment can be extremely slow. What condition(s) would keep an economy from moving back to full employment quickly and easily?

Answer 2

@bohotness

Answer 3

which one do yuo think is you answer love?

Answer 4

I don't know. I am having a hard time graphing and especially with B.

Answer 5

okay

Answer 6

i think you right love

Answer 7

I saw one example, though I don't know if its right